On October 1, 2016, Pennington Company issued an $800,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2017, the entry to record the payment of the note on July 1, 2017, will include a: A. debit to Notes Payable of $860,000. B. debit to Interest Payable of $60,000. C. debit to Interest Expense of $20,000. D. credit to Cash of $800,000